Talking and Surfing Same Time Yet? The Verizon iPhone 5s and 5c

Most of us have taken a peak at the exterior and reviewed major specs for Apple’s two latest phones. If you are a Verizon Wireless customer there is one technical detail you may have missed. The new Apple phones are still not supporting SVLTE and SVDO. What’s SVLTE and SVDO? Here’s some details on these two protocols / technical standards:

Simultaneous Voice and LTE (Long Term Evolution)

Referred to as SVLTE, allows a mobile phone to use both voice and data networks at the same time – specifically when the voice network is CDMA 1xRTT (what Verizon uses) and the data network is LTE (what providers are calling 4G. By not using SVLTE, Verizon’s 4G data network is not available while on a voice call.

Simultaneous Voice and Data Only

Referred to as SVDO, this is the older standard for 3G networks. If you have an iPhone 4 or older, you have a 3G phone. Later iPhone (5 and on) have both a 4G and 3G radio and the device will fall back to 3G-mode when not in 4G coverage areas.  Similar to SVLTE, when the voice network is CDMA 1xRTT and the data network is CDMA 3G (also referred to as CDMA 1xEV-DO) the data network is not available while on a voice call.

Is this significant? Yes and No. The lack of SVLTE should not matter once VoLTE (Voice over LTE) launches on a large scale, allowing both voice and data to operate seamlessly on one Verizon Wireless 4G network.

What’s really interesting is Verizon Wireless has required their handset manufacturers to support both of these technical standards – that is - all manufactures except Apple.

Verizon Trimming Some Wireline Limbs

I've been teaching Verizon technicians in a program called NextStep since the mid 1990's. The Next Step Program allows contract qualified Verizon associates who are members of the Communications Workers of America (CWA) or the International Brotherhood of Electrical Workers (IBEW) to earn an Associate in Applied Science degree in Telecommunications Technology from a participating college. It's been a great opportunity for everyone involved to keep up and learn as the industry has transitioned.

This morning I taught my first class of the fall semester and we had some interesting discussion on where copper based landline services like DSL are going. The other night on Jim Cramer's show, Verizon CEO Lowell McAdam opened up a bit on the companies plans. Here's some back and forth from the show posted at  Stop the Cap!:

Jm Cramer, CNBC: “[Under former Verizon CEO Ivan Seidenberg, Verizon] took areas that really weren’t growth areas and sold them to Frontier and other players. Would you be able to get rid of some of your underperforming landline businesses to be able to increase [Verizon's] growth even further?”

Lowell McAdam, Verizon: “That is a possibility. [...] If you talk about opportunities here, now that we have One Verizon, [...] we are going to trim some limbs around the tree here. Things that aren’t performing will not be a part of our portfolio so we can invest in things that will drive the kind of growth we are excited to be able to tap here.”

In New Jersey and New York, Verizon is moving on a wireless landline replacement called Voice Link. It's optional for some customers but many are thinking it will replace copper services in there is approval from the states regulators. Verizon is calling Voice Link an improvement for voice customers dealing with repeated service calls.

Bloomberg estimates the Verizon wireless net worth is around $289 billion while Verizon wireline (landlines, FiOS and business broadband) is worth just $24 billion. Looking at revenue, Bloomberg says Verizon wireline totaled $39.8 billion last year which is down from $50.3 billion in 2007. During the same period, Verizon wireless revenue was up 73% to $75.9 billion.

It's pretty clear where this is all going - at least when it comes to Verizon wireline.

You can read a transcript of the complete McAdam interview linked here.

Bits and Bytes Podcast - 4G LTE, Motorcycles Made From Car Parts, and Bamboo Clothing

Last week Mike Q and I recorded a new 36 minute and 10 second podcast covering 4G LTE, Motorcycles made from Car Parts, and Bamboo Clothing. Here's links to referenced content  in the podcast:

Verizon HomeFusion Uses 4G LTE to Complete Last Mile Nationwide  

Cariloha Bamboo Clothing

Marcin Jakubowski: Open-sourced blueprints for civilization

Google Translate Car to Motorcycle

You can listen directly in your browser clicking the play arrow below.

If you have iTunes installed you can subscribe to our podcasts by clicking here.

Some Thoughts on Google's Fiber To The Home (FTTH) Experiment

Last week, Google announced plans to test ultra-high speed broadband networks in one or more trial locations across the country. The company is saying these test networks will deliver Internet speeds more than 100 times faster than what most Americans have access to today, over 1 gigabit per second, fiber-to-the-home connections to at least 50,000 and potentially up to 500,000 people.

The company wants to experiment with new ways to help make Internet access better and faster for everyone. Here are some specific things that they have in mind:

• Next generation apps: Google wants to see what developers and users can do with ultra high-speeds, whether it's creating new bandwidth-intensive "killer apps" and services, or other uses we can't yet imagine.
• New deployment techniques: They will test new ways to build fiber networks, and to help inform and support deployments elsewhere, will share key lessons learned with the world.
• Openness and choice: Google will operate an "open access" network, giving users the choice of multiple service providers.

I like it, I like it a lot. Not because I think Google will single-handedly solve the broadband access and availability problems in our country but, because Google is trying to do things a little differently. High-bandwidth delivery efforts in the United States to this point have worked in some areas but not in others.

A few weeks ago I wrote as far as broadband goes - things have not got much better since 2007 in most of the rural communities in our country - in many places I would argue access today is worse than it was in September 2007. Things have been pretty dismal in many parts of our country. Now maybe we've got a glimmer - just a glimmer - of excitement and (dare I use the word) hope.

From now until March 26th, Google is asking interested municipalities to provide information about their communities through a Request for information (RFI), which the company will use to determine where to build their network. You can get more information on Google's experimental fiber network plans on the Official Google Blog.

Someone is going to figure out how to do this and so far I'm really liking Google's "experiment".

Why the Public Switched Telephone Network Is Sunsetting

In my last post, titled Verizon No Longer Concerned With Telephones Connected With Wires, I described an interview Ivan Seidenberg, chief executive of Verizon Communications, did at a Goldman Sachs investor conference on Thursday. In the inteview Seidenberg described how, by using the decentralized structure of the Internet rather than the traditional design of phone systems, Verizon had a new opportunity to cut costs sharply.

This summer I spent some time reading Martin Sauter's excellent new book Beyond 3G, Bringing Networks, Terminals and the Web Together. In the book Martin describes the movement in the wireless/cellular world away from circuit-switched telephony technologies like 2G, 2.5G (EDGE) and even 3G to 4G based technologies like LTE and WiMAX.

What does wireless technology have to do with copper wires? Like these wireless technologies, the Public Switched Telephone Network (PSTN) uses circuit-switched telephony technology designed around voice. Even DSL (a technology basically designed to extend the life of the copper wire based network by a few years) is a circuit-switched service - Internet based traffic goes to the Internet and voice traffic goes - you guessed it - right to the PSTN.

Circuit-switch based networks have made a lot of sense for the past 100 years or so. They work well for voice calls because by nature they are deterministic. If a circuit is available a connection is made. If a circuit is not available the call attempt gets rejected and the customer gets some kind of message back from the busy switch. Once a connection is made (phone-to-phone) the connection is also deterministic - each call is independent and cannot influence any other calls. A great design for voice communications - whether it be with copper wires or over wireless frequencies.

The problem with these circuit-switch based networks though is they were designed for voice. Sauter argues correctly that when networks are designed for specific applications, there is no separation between the network and the applications which ultimately prevents evolution. In addition, tight integration of applications and networks also prevents the evolution of an application because changing the applications also requires changes to the network itself. The PSTN basically cannot evolve beyond where it is now - it's been tweaked-up to the point where it cannot be tweaked-up any more.

Internet (TCP/IP based) technologies work using exactly the opposite approach. A neutral transport layer carries packets and any kind of application (voice, video, data, etc) can efficiently send high and low volumes of data through the network. For applications the connection process is transparent - the device operating system establishes an Internet connection before the application is even launched. The network and any applications running that use the network are independent of each other.

Verizon Wireless, AT&T, Sprint, etc are all moving to non-circuit-switched IP based 4G technologies like WiMAX and LTE to handle voice, video and data traffic. It is inevitable that Verizon's landline division (along with other landline carriers) move in this same direction.

Verizon No Longer Concerned With Telephones Connected With Wires

According to the New York Times, that's what Ivan Seidenberg, the chief executive of Verizon Communications said at a Goldman Sachs investor conference on Thursday.

Why? Traditional landline customer numbers have been shrinking and not just for Verizon. Earlier at the conference according to the same Times article, Randall Stephenson, chief executive of AT&T, and Ed Mueller, head of Qwest Communications, both talked about seeing a day when their landline businesses would stop shrinking.

Here's a few more interesting quotes from the piece:

Mr. Seidenberg said that his “thinking has matured” and that trying to predict when the company would stop losing voice landlines “is like the dog chasing the bus.”

“Video is going to be the core product in the fixed-line business,” Mr. Seidenberg declared. And the focus will move from selling bundles of video and landline to video and cellphones, he added.

By converting most of its landline operation to FiOS, Mr. Seidenberg said Verizon had a new opportunity to cut costs sharply. FiOS uses the decentralized structure of the Internet rather than the traditional design of phone systems, which route all traffic through a tree of regional, then local offices.

“We don’t look any different than Google,” he said. “We can begin to look at eliminating central offices, call centers and garages.”

The article finishes with Seidenberg talking of the psychological lift he had gotten when he finally escaped from the shadow of the legendary Alexander Graham Bell and his copper wires. “Once I shed myself of the burden of chasing the inflection point in access lines and say ‘I don’t care about that anymore,’ I am actually liberated,” he said.

[Thanks to Mark O for sending me a link to this article - be sure to read the entire New York Times piece linked here.]

A Summary Of The Verizon - Frontier Deal

Yesterday, Verizon and Frontier Communications announced an agreement that would sell off a large chunk of Verizon's rural markets. Here's a quick summary taken from DSL Reports pieces on the deal:

• Frontier will give Verizon $5.3 billion in Frontier stock and take on an additional $3.3 billion in debt.
• Frontier will get Verizon landline networks in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia. Wisconsin and some rural areas of California.
• Frontier will grow to more than 7 million access lines in 27 states and will be the largest provider of voice, broadband and video services focused on rural to smaller city markets in the United States.
• Frontier will be picking up some FiOS - 41 local franchises and the state of Indiana will be transferred from Verizon.
• Approximately 11,000 Verizon employees will end up working for Frontier.
• Verizon Wireless and Verizon Business services in the listed states will not be transferred to Frontier.
• With this deal Verizon may eventually reach 80% FiOS coverage on their remaining footprint.
• It is doubtful Fiber to the Home (FTTH) services will be expanded in any of the transferred regions (by Frontier) in the near future.

According to DSL Reports, Frontier has struggled of late to deliver even 3Mbps worth of connectivity to many of its rural users according to posts in their forums, but Verizon CEO Ivan Seidenberg issued a statement saying Frontier would apply their "laser focus" on the needs of rural customers to ensure a smooth transition and quality service.

The deal is expected to take about a year to complete.

2009 - Lots of Bandwidth?

Yesterday, Comcast announced 50Mbps service in Baltimore, Chicago, Atlanta, and Fort Wayne, Indiana. The service is being offerred over upgraded DOCSIS 3.0 tiers and will initially cover only parts of the listed cities.

The company is offering two new residential tiers:

• Extreme 50, offering up to 50 Mbps of downstream speed and up to 10 Mbps of upstream speed at $139.95/month.
• Ultra, offering up to 22 Mbps of downstream speed and up to 5 Mbps of upstream speed at $62.95/month.

And two new business class tiers:

• Deluxe, offering 50 Mbps / 10 Mbps tier for $189.95/month, which includes a full suite of features and support.
• Premium, offering speeds up to 22 Mbps / 5 Mbps for only $99.95/month.

The company says they will complete upgrading these cities early next year and will continue to roll out high bandwidth (what Comcast is calling wideband ) services at a rapid pace.

With the cable companies rolling out these tier levels we should see the telcos (Verizon and AT&T especially) respond pretty quickly. If you are fortunate enough to live or work in an area where there is this kind of broadband competition 2009 should be a nice year - you'll be seeing some very nice service offerings as the cable companies and telcos go after your business.

Will Verizon Offer A Fiber To The Node Product In 2009?

Yesterday, AT&T president and chief executive of telecom operations John Stankey announced the company was on track to add its one millionth U-Verse TV subscriber sometime next week. Stankey also announced plans to make the service available to 17 million homes by the end of 2009. AT&T's U-verse Fiber To The Node (FTTN) implementation involves running fiber out to a neighborhood node and then completing the connection over a copper connection to provide voice, video and data services.

AT&T has spent considerably to develop FTTN technology and along the way has had a few false starts. Launched in 2006, Project Lightspeed (as U-verse was first called) was a $4.6 billion investment aimed to reach 19 million homes in 13 US states by 2008 using a combination of fiber optic and copper network technologies.

FTTN relies heavily on set-top box techology - you can't get the same amount of bandwidth out of a piece of copper that you can out of a piece of fiber. Bandwidth limitations are made up for using caching. Early boxes had low end 386-based processors and limited memory and storage capacity. Trials in Europe were not favorable and the company had to go back to the drawing board a few times. Costs rose - in May 2007 AT&T announced the capital expenditure of Project Lightspeed would increase from $4.6B to $6.5B and the number of homes passed would decrease to 18 million; down a million homes.

Fast forward to today - the company hung in there with the technology it looks like the bugs have been worked and they've got it scaling!

Around the same time in 2006 and in technical competition (not market since the telcom footprints do not overlap) Verizon decided to go with a Fiber To The Home (FTTH) implementation - what we know as FiOS. FiOS runs an optical fiber directly to a subscribers home to deliver voice, video and data services and I've seen total Verizon investment estimates for the product anywhere between $18 and $23 billion. Initial Verizon plans were to pass 3 million homes per year starting in 2006 until they reached approximately 60 percent of their 2006 customer footprint. Estimates have changed slightly with the Verizon sell-off of Maine, New Hampshire and Vermont to Fairpoint Communications but you get the idea.

Why only 60% of the Verizon customer footprint? It's too expensive to run fiber to every home. I'm a perfect example - I live in a rural small town in Western Massachusetts. My house is on a private 1.5 mile road with copper from Verizon buried down the road along with another 300 plus feet buried under my driveway. There are only 7 homes on my road, all with at least 150 feet of buried copper between the road and the house. I'm guessing but I would say my neighborhood is pretty low on the FiOS list. As an alternative, Verizon is offering me ADSL but..... I'd like a little more data bandwidth and what about video services - you can't do that over ADSL.

My only real option - cable service from Comcast (which I love and probably not give up even if I had a choice). Verizon does not have a voice/video/data product they can even try to sell me unless I go with a Verizon/DirecTV option and put a satellite dish on my house. I don't really want to do that.

Back in June of this year I wrote an entry titled Will Verizon Put More Gas In The Fiber Engine? In that piece I questioned whether Verizon was considering FTTN technology to reach out into the more difficult areas and better compete with the cable companies and their aggressive DOCSIS 3.0 rollout plans. With this recent announcement by AT&T showing FTTN technology works and scales I don't see how Verizon can ignore an FTTN option in neighborhoods like mine.

I'm gonna stick my neck out on this one with my first prediction for 2009 - Verizon will announce an FTTN product sometime next year.

CWA, IBEW and Verizon Settle

The Communications Workers of America and the International Brotherhood of Electrical Workers have tentatively settled on a three year contract, avoiding the 12:01 AM August 11 strike deadline. Here's some details on the agreement from the CWA website:

Verizon will extend union recognition to 600 former MCI technicians at Verizon Business who have been seeking representation for nearly two years.

New opportunities for union workers to provide customer support and service at Verizon Business are also included.

The tentative settlement also eliminates subcontracting of work in a number of job areas, converts many temporary jobs to permanent and brings additional jobs associated with Verizon's cutting edge FiOS technology into the union bargaining units.

Overall, the settlement should create 2,500 new union jobs.

Verizon and the unions have agreed to meet regularly during the course of the new agreement to review technological and business developments affecting employment, which will allow the company to stay current with business opportunities while also insuring that the unions are able to continue to represent employees as the business environment changes.

The settlement preserves fully-paid health care premiums for all active and retired employees.

Future hires will have a defined contribution formula for retirement health care with the amount of Verizon's contributions subject to negotiation in each subsequent contract.

Verizon agreed to work with the unions in a joint effort to achieve meaningful health care reform. The company will provide funding of $2 million per year to the project.

The settlement calls for wage increases totaling 10.87 percent compounded over the three-year contract term.

COLA (cost of living adjustment) language remains in the contract.

Pension bands will be increased by 10.87 percent compounded over the term of the agreement.

The settlement also provides for a streamlined grievance dispute resolution system which will speed up a process that has been taking as long as three years to complete.

Good news for all - workers, Verizon, the unions and most importantly...... Verizon customers.

Will They Strike? Deadline Monday, August 11, 12:01 AM

Negotiations continue at this time between the IBEW, CWA and Verizon. From the CWA website yesterday: the CWA/IBEW Unified Bargaining Committees set a bargaining deadline of Monday, Aug. 11, 12:01 AM for completing contract negotiations with Verizon. At that time, the existing contract that was extended last weekend will expire. Strike action then becomes possible if a fair settlement is not reached.

Been some rumors flying around but I'm not going to tell. It has not been settled yet - will they get it done? I'm still guessing yes!

Will Verizon, the CWA and the IBEW Avoid a Strike?

My Dad worked for AT&T as a lineman/installer repairman and one of my strongest memories growing up is of my Dad on strike in 1968. I was 11 and thought having my Dad home all summer was the greatest thing in the world. He'd go picket a few hours and the rest of the day my two brothers, sister and Mom had him at home. Looking back it was probably a pretty rough summer financially for my parents - when you are on strike you do not get paid. I remember doing a lot of fishing which, to us kids, was a lot of fun but the more I think about it we were probably fishing to put food on our table! We also had a large vegetable garden - fresh fish, tomatoes, corn, peas, beans, peppers, my father home almost all the time and the Red Sox the year after 1967 - it was a great summer.

The four of us kids also learned some valuable lessons about dedication, teamwork, commitment and holding to our beliefs that summer - my Dad could have decided to work and let his union brothers and sisters take the hit but he did not. We also learned a few new words including what a scab and a strikebreaker were.

Fast forward to last Saturday, a little before midnight, when the latest contract expired - Verizon, the Communication Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) agreed to stop the contract clock and continue to negotiate. Issues on the table include job security, health care and what kind of work the unionized workers are doing - fundamentally the same issues my Dad struck for 40 years ago.

A strike this summer would be significant for the workers, the company and for all of us that live and work in Verizon country. The timing is never right for a strike but, with the massive roll-out of optical services and the convergence of voice, video and data over IP (Internet Protocol), the stakes are probably higher this round than they have ever been. Negotiations have continued over the past two days in an attempt to finalize a new contract and there has been little news. Talks continue right at the minute I'm writing this. Continued focused discussion with no media leaks.... I see this as good news and am thinking this one may just get settled without a strike.

Verizon To Push Higher Bandwidth In-Home Network Equipment

An inside contact at Verizon sent along some interesting content from a Verizon corporate website post. The content describes how Verizon will start encouraging their FiOS fiber optic customers to upgrade in-home network equipment. The company will have new routers available in the third quarter of this year from Actiontec and Westell. These routers will boost in-home speeds over coaxial cable to up to 175 megabits per second (Mbps) from 75 Mbps and allow operation of multiple simultaneous Wi-Fi networks. For example, customers will be able to modify security settings on each network, allowing a Wi-Fi network for guests and visitors, one with parental controls for young users, one for computers holding secure documents, or one for teleworking only.

Here’s a list of new design features and benefits:

Higher bandwidth, offering 175 Mbps total data flow in the home.

Support for up to four Wi-Fi networks, enabling more than one Wi-Fi network to operate simultaneously. Quality of service controls to give traffic preference to critical services like voice or security devices.

Remote management of devices and services beyond the router by technicians, improving the service and support experience for customers.

Integrated dual-core processor to allow simultaneous networked data services, possibly including home security, home monitoring, network security and other applications.

Support for media sharing between home devices, such as between TVs and PCs, media servers, and other consumer electronics, using DLNA and Universal Plug and Play standards now being adopted by hardware manufacturers to support connectivity and service integration.

Enable modular expansion using a USB interface, so that shared storage servers, printers, peripherals and other devices can be added.

It makes sense to upgrade internal network devices to keep up with the fiber infrastructure.

Fairpoint Commits To DSL Rollout in Maine, New Hampshire and Vermont

I've written in the past about the Verizon Northern State (Maine, New Hampshire and Vermont) sell off to Fairpoint Communications and have expressed my concerns about the lack of bandwidth in these states. An article in the Benninton (Vermont) Banner on July 12 described DSL rollout by Faipoint in Bennington County and also discussed expansion in all 14 Vermont counties. Fairpoint spokeswoman Beth Fastiggi is quoted in the piece as follows:

By 2010, we hope to have at least 80 percent of households in the state with DSL access and.... we hope to have every customer in half of our exchanges access by 2010 as well.

The piece makes it clear that initial rollout coverage will not be available to everyone. Fastiggi is further quoted:

We're doing certain areas in each town — nothing we're doing encompasses the entire town. I don't want to say we're expanding bit by bit, but we are moving neighborhood by neighborhood.

Regarding the future for Maine, New Hampshire and Vermont customers, Fastiggi is quoted:

The current expansion is all using DSL. The network we're building is capable of being upgraded. It can use the higher-speed DSL service, and can use fiber.

The Banner piece also claims Fairpoint's DSL service starts at $17.99 per month which (at the time of this writing) I have not been able to confirm. I could also not confirm downstream and upstream bandwidths.

Will Verizon Put More Gas In The Fiber Engine?

Reuters posted an interesting article yesterday titled Verizon mulls alternatives to all-fiber FiOS. The article describes how Verizon will continue to roll FiOS out through 2010 passing 18 million customers at a cost of over $20 billion. The article also hints at some plans for beyond 2010.

In an interview yesterday at the NXTcomm telecommunications industry conference in Las Vegas, Verizon Chief Technology Officer Mark Wegleitner told Reuters the company is looking at continued expansion after 2010. Here’s a few quotes from the article:

Wegleitner said "What we'd look for is another approach to Fiber to the Premise (FTTP)."

He sees room to expand FiOS after 2010 to another 18 million users, but shifting away from FTTP could help expand high-speed Internet and video into sparsely populated areas where it is too expensive to build out an all-fiber network.

"I'm not sure what the trigger point would be. There still could be more gas in the engine for FTTP," he said.

I’ve always found the 18 million customer number disturbing because it only covers about 60% of Verizon’s original footprint. With Verizon's sell-off of Maine, New Hampshire and Vermont to Fairpoint Communications the 60% figure goes up a little bit but not by much.

It looks like the company may be considering Fiber to the Node (FTTN) technology to reach out into the more difficult areas. FiOS is selling extremely well so it makes sense to expand beyond the original plan. I also suspect Verizon is feeling some pressure from the cable companies and their aggressive DOCSIS 3.0 rollout plans.

My Thoughts on the Verizon Wireless / Alltel Deal

Over the past couple of days I received some email asking for my thoughts on the Verizon Wireless / Alltel deal. At the time the Verizon Wireless purchase of Alltel had not been agreed to by the companies - it was "under discussion". Well.... late yesterday the two companies agreed. Here's some details on the deal from an Alltel press release and Alltel's Wikipedia entry:

- Alltel is the fifth largest wireless carrier in the United States.

- Alltel serves more than 13 million customers in markets in 34 states. This is the largest wireless coverage area in the United States and includes 57 primarily rural markets that Verizon Wireless does not serve.

- Alltel focuses on small to medium size cities but provides wireless services to residential and business customers in all 50 states through low-cost roaming agreements with the major national CDMA carriers including Verizon Wireless and Sprint Nextel. These agreements give Alltel customers access to nationwide service while providing those carriers coverage in rural areas.

- Verizon Wireless currently serves approximately 67.2 million customers. The deal will bump Verizon's customer numbers to over 80 million, placing Verizon ahead of AT&T in the number of wireless customers served.

- The deal is valued at $28.1 billion. Verizon Wireless will acquire Alltel's equity for $5.9 billion and assume Alltel's outstanding $22.2 billion in debt.

When compared to the big companies Alltel, with its 13 million customers, is a small player. Being small has provided some advantages though. Here's an interesting quote from a Washington Post piece titled Is Verizon Wireless Buying Alltel For Its Assets Or For Its Culture Of Innovation?:

[being relatively small] gives the company a level of comfort and flexibility to quickly roll out new services without the constraints larger carriers face. It doesn't worry that millions of users will start using a new service overnight that crash the network, and it doesn't have to train as many customer service and retail representatives every time it launches a new phone or application. So, the concern is that once a part of Verizon this attitude will fade.

My thoughts:

Will Verizon Wireless maintain a level of separation and use Alltel as a wireless "skunk works"? I don't see how it can.

Are Sprint Nextel and T-Mobile next? I would not be surprised to see AT&T take a shot at one of them.

What do these kinds of mergers usually mean for consumers? Less competition and fewer choices commonly lead to higher prices.

The Verizon Wireless / Alltel deal still needs regulatory approval and is expected to be completed by the end of this year.

Cable Companies Moving Fast With DOSCIS 3.0 Products and Services

There's been a lot of DOCSIS 3.0 activity recently as the cable companies move rapidly towards bandwidths of 100 Mbps and greater. In April 2007, CableLabs, the cable modem certification consortium, accelerated their certification plan time-line and we're now seeing certified products at deployable levels. Earlier time-lines did not have product reaching deployable levels until late 2008 or early 2009.

Key to this accelerated certification plan was CableLabs decision to "tier" feature availability for product manufactures with the following qualification levels:

Bronze Qualification: Supports IPv6 and Downstream Channel Bonding

Silver Qualification: Adds Advanced Encryption System (AES) and Upstream Channel Bonding

Full Qualification: All DOCSIS 3.0 Features

This tiered level of certification is expected to be dropped in early 2009, when all cable modems will need to have "Full" qualification.

Today (a little over a year later) we're seeing nice results from the accelerated time-line. Here's a couple of quotes from a recent Cable Digital News interview with Time Warner Cable president and CEO Glenn Britt:

Time Warner Cable conducted some Wideband tests in Austin, Texas, last year, "and it works fine."

While 100 Mbit/s seems to be the early sought-after speed benchmark for DOCSIS 3.0, Britt said he's seen it deliver speeds up to 200 Mbit/s, albeit in a lab setting.

Britt also said Time Warner will begin testing Docsis 3.0 in New York "later this year" and roll out DOCSIS 3.0 more widely in 2009 and 2010, "in response to demand." We'll see if Time Warner accelerates the New York City roll-out in direct competition with Verizon's New York City FiOS roll-out.

Comcast is also moving fast with DOCSIS 3.0, having launched the service in the Minneapolis area and working to have as much as 20 percent of its footprint DOCSIS 3.0 ready by year's end.

Will The Cable Companies Build a Mobile Broadband Network?

Scott Moritz wrote an interesting piece at CNNMoney/Fortune titled Comcast pins hopes on a mobile future. Cable companies Comcast and Time Warner have been negotiating with Sprint, Clearwire, Intel, and Google to launch a joint effort to build a national WiMax network. I've written here in the past about WiMax and the relationships Clearwire, Sprint and Google were building and it makes sense to see the cable companies looking at providing broadband wireless services.

We're seeing some interesting customer movement in the industry - another Fortune piece from May 1 describes Comcast's first quarter earnings, here's a couple of interesting quotes from that piece:

• Comcast lost 57,000 basic video subscribers, but added 494,000 digital cable subscribers.
• The company said 65% of video subscribers now have digital service, up from 55% a year ago, and 43% have so-called advanced services like digital video recorders or high-definition TV, up from 38% last year.
• The company also added 492,000 high-speed Internet users and 639,000 Comcast Digital Voice phone customers.

What's happening? We've got the telcos like Verizon and AT&T chasing new video customers and the cable companies like Comcast and Time Warner chasing new voice customers. Both AT&T and Verizon sell 3G wireless services - it makes sense for the cable companies to add a wireless product and it makes a lot os sense to partner with existing wireless providers like Clearwire and Sprint. JPMorgan analyst Jon Chaplin is quoted in the earlierFortune piece: By creating a joint WiMax venture, "it would cost them a fraction of what it would cost them to build out" their own network or to buy Sprint outright.

Keep watching - the deal could happen as early as this week.

Fairpoint Communications April 17 Investor Call Update

Last week I wrote about the April 17 Fairpoint Communications Investor call that was help last Thursday. The call was a long one, lasting 107 minutes (!). I've listened to it, looked at the slides, etc - here's the major technology and integration highlights I got from the call.

With the Verizon Northern States (Maine, New Hampshire and Vermont) acquisition, the company currently:

- Is the 8th largest local telephone company in the U.S.
- Operates in 18 states
- Serves 1,616,171 Voice Access Lines
- Serves 290,577 Broadband Lines that represent approximately an 18% penetration

Broadband penetration rates are currently low compared to peers and the company admits this. FairPoint penetration is 18% while peer average is 25%.

Fairpoint believes the increased size, economies of scale and extensive network are expected to improve cost structure and enhance product capabilities and sees opportunities for revenue in four areas:

- Increased broadband availability and IP based services

- Buildout of IP / MPLS networks will support new services
- Broadband addressability will be expanded from 68% of access lines to over 90% within five years

- New product bundles

- The IP / MPLS network upgrade will provide flexible business platforms

- Increased focus on local sales and marketing

- New local and experienced sales force of 50 employees being deployed
- Significant DSL build-out will increase availability to all customers

- Strong focus on business segment

I've listed on only some of the technology components and integration issues here - there is also a lot of good business & financial information for investors and Fairpoint employees.

You can download the full set of slides, listen to the audio presentation, and watch the webcast for detail information. All content can be accessed here.

Fairpoint Teleconference on Purchase of Maine, New Hampshire and Vermont on Thursday

Fairpoint Communications will be hosting a teleconference on Thursday, April 17, 2008 at 10:00 a.m. ET to discuss the Company's recently completed transaction in which FairPoint acquired Verizon Communications' landline and certain related operations in Maine, New Hampshire and Vermont.

Scheduled for the call from Fairpoint:

Chairman and Chief Executive Officer, Gene Johnson
President, Peter Nixon
Chief Financial Officer, John Crowley

According to a Fairpoint press release posted on Fox Business, a slide presentation will be made publicly available prior to the conference call in the "Presentations" section of their Investor Relations page linked here. This morning (Sunday, 4/13/08) the presentation had not been posted yet. The press release also says the call will allow ample time for a Q&A session.

Here's the live call in information:

Lines open at 9:50 a.m. on Thursday, April 17, 2008
Call in number: (888) 253-4456 (US/Canada) or (706) 643-3201 (international)
Request the FairPoint Communications call or Conference ID# 4335773

The teleconference will be recorded and made available if you cannot make the live call. Here's the replay information:

Number: (800) 642-1687
Confirmation code 43357737
Recording Availability: Thursday, April 17, 2008 at approximately 1:00 p.m. ET through Thursday, May 15, 2008 at 11:59 p.m.

In addition, an online Webcast replay will be available beginning at 1:00 p.m. ET on April 17, 2008 and will remain available for one year.

If you've been following my writing you know I have great concerns about the availability of broadband services in rural parts of the United States. This will be an interesting teleconference - I'll be listening and writing about it here.